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PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Period Ended March 31, 2016 and 2015 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
Table of Contents
35. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c.
Others continued
iv USO continued b. Telkomsel continued
On March 31, 2014, the USO program for packages 1, 2,
3, 6
and 7 ceased. As of September 18, 2014, Telkomsel filed an arbitration claim to BANI for the settlement of the
outstanding receivable from BPPPTI. On October 23, 2015, BANI decided that Telkomsel should pay the outstanding receivables from those USO program to BPPPTI amounting to
Rp94.2 billion. Telkomsel accepted the decision and paid the balance in December 2015.
For the years ended March 31, 2016 and 2015, the Company and Telkomsel recognized the following amounts:
2016 2015
Revenues
Construction -
1 Operation of telecommunication
service center -
180 Profits Losses
Construction -
20 Operation of telecommunication
service center -
5 As of March 31, 2016 and December 31, 2015, the Company’s and Telkomsel’s net carrying
amount of trade receivables from the USO programs which are measured at amortized cost using the effective interest rate method amounted to Rp178 billion and Rp179 billion,
respectively Note 5.
36. CONTINGENCIES
In the ordinary course of business, the Group has been named as defendants in various legal actions in relation with land disputes, monopolistic practice and unfair business competition and SMS cartel
practices. Based on managements estimate of the probable outcomes of these matters, the Group has recognized provision for losses amounting to Rp43 billion as of March 31, 2016.
a.
The Company, Telkomsel and seven other local operators are being investigated by The Commission for the Supervision of Business Competition “Komisi Pengawasan Persaingan
Usaha” or “KPPU” for allegations of SMS cartel practices. As a result of the investigations on June 17, 2008, KPPU found that the Company, Telkomsel and certain other local operators had
violated Law No. 5 year 1999 article 5 and charged the Company and Telkomsel in the amounts of Rp18 billion and Rp25 billion, respectively.
Management believes that there are no such cartel practices that led to a breach of prevailing regulations. Accordingly, the Company and Telkomsel filed an appeal with the Bandung District
Court and South Jakarta District Court on July 14, 2008 and July 11, 2008, respectively. Due to the filing of case by seven operators in various courts, the KPPU subsequently requested
the Supreme Court SC to consolidate the cases into the Central Jakarta District Court. Based on the SC’s decision letter dated April 12, 2011, the SC appointed the Central Jakarta District Court
to investigate and resolve the case. On May 27, 2015 Central Jakarta District Court decided to that the Company, Telkomsel and seven other local operators win this case.
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PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Period Ended March 31, 2016 and 2015 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
Table of Contents
36. CONTINGENCIES continued
